Tech
Runlayer, Rippling drop lawsuits. But the brouhaha is still a cautionary tale for founders.
On Wednesday night, Runlayer and Rippling dropped their respective lawsuits against each other. No settlement was made. No money changed hands. Not even lawyers’ fees, according to court documents seen by TechCrunch.
Rippling celebrated by instantly releasing its MCP gateway, the product at the heart of the dueling lawsuits and the one that competes with Runlayer’s offering.
This public fight is a cautionary tale to founders: In the age of AI, when building new software has become almost trivial, you never know who your next competitor will be. It might even be a prospective customer.
To recap the short-lived legal brouhaha: Runlayer is an early-stage startup that launched out of stealth in November, 2025 and has raised a total of $42 million from VCs like Khosla Ventures’ Keith Rabois and Felicis. It’s led by third-time founder Andrew Berman (previous companies: baby-monitor maker Nanit and an AI video conferencing tool, Vowel, that sold to Zapier in 2024).
After Rippling tested Runlayer’s MCP gateway for more than a year, with the two engineering teams working closely together, Rippling never signed on to become a customer, according to Runlayer’s lawsuit. Instead, Berman received a text from a Rippling employee that said his employer was building its own MCP gateway and planned to release it as a product. This employee described Rippling’s product as a clone of Runlayer’s.
Runlayer sued, claiming that Rippling violated contractual agreements covering the tests of its products.
An MCP gateway securely handles an enterprise’s AI agent requests for data from other software systems. So, for instance, when a hiring professional asks for details on the top five candidates for a job, including their emails, that data must be retrieved from the company’s recruitment system. The gateway handles the retrieval process, rather than granting agents direct access to the company’s software systems. It can then also layer on other features like employee role-based access control (managers getting different access than interns), observability (logs and usage trails) and so on.
Then Rippling countersued, alleging that Runlayer was violating some of its patents. The move was seen by Runlayer as a way to induce it to drop its suit while ratcheting up legal expenses.
Runlayer dropped its suit after spending the last three weeks in discovery. Rippling also dropped its own suit and again, didn’t collect a settlement either.
So, while the lawsuits didn’t lead to anything but a lot of public flaming, there is a deeper takeaway for founders. The AI landscape is changing so rapidly that the long-running technical shoot-outs that enterprises love to impose on startups need to be rethought. Between the time an AI startup enters into one and however-many months later, an enterprise’s needs and desires may have drastically changed.
In the meantime, in the span of weeks, Rippling, who’s bread and butter has historically been payroll and benefits management, has now entered the AI Gateway market with a tool that can route to different models while dashboarding token spend by employee. The product is competing with the likes of Stripe, Ramp and Databricks.
Now Rippling is also in the AI security business with this MCP gateway that ties AI access to employee roles. It competes with the likes of Runlayer, Docker and Amazon Bedrock.
As for Runway, its pitch is a broader bundle of agent security services tied to the gateway, ranging from agent creation to spotting shadow AI agents running in an enterprise unbeknownst to IT.
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Tech
Ok, can we actually cool data centers with our pee?
In a cheeky marketing campaign, Liquid Death teamed up with former Philadelphia Eagles star Jason Kelce to share a solution to mitigate the environmental impact of AI data centers, which require massive quantities of water to prevent servers from overheating.
“AI data centers waste millions of gallons of water,” Kelce quips in the video campaign. “That’s why Liquid Death and Garage Beer have teamed up. We want your pee to cool these data centers.”
Then, as a crowd of people walk through a field sipping their branded beverages, they sing in unison: “Let’s pee on computers together to save humanity!”
It’s a funny commercial. What’s even funnier is that Kelce has unwittingly stumbled upon a real tactic for cooling down data centers.
“The Liquid Death commercial is funny and tongue-in-cheek,” Michael Obradovitch, vice president of Data Center Global Accounts at Ecolab, told TechCrunch. “But in reality, there is a fair amount of alternative water sources already being used to a similar extent to cool these data centers.”
These alternative water sources, when used in data centers, at least partially offset the demand for potable drinking water. One such alternative water source is recycled water, which is made by treating wastewater and sewage water so that they’re safe to use again. Wastewater and sewage water contain many things, including — you guessed it! — human urine.
“You wouldn’t just use pee, but you can clean it and make it into useful water, and that’s what we advocate,” Bruno Pigott, executive director of the WateReuse Association and former acting assistant administrator in water for the U.S. Environmental Protection Agency (EPA), told TechCrunch.
To be clear: you should not actually contribute gallons of your pee to help cool data centers, as Kelce facetiously suggests. But just for the sake of the thought experiment: what would happen if you did try to cool a data center with a steady stream of pee?
“Pee contains all sorts of stuff. It contains salts, it contains urea, bacteria, organic matter of all sorts that can leave mineral deposits. If you just put that into a cooling tower or something else, it would require constant cleaning,” said Pigott. “One of the methods of cooling is called evaporative cooling, where hot air is passed through water to remove heat through evaporation. Can you imagine if you just poured urine through hot air?”
We do have the technology to turn our urine into potable drinking water — that’s what astronauts do in space, since they can only bring so much water with them on their spacecraft. But that isn’t efficient at a large scale, and even if it were, it’s not like scientists can just access millions of gallons of pee at will (well, not unless Kelce really commits to the bit). Instead, our toilet water ends up in wastewater and sewage.
That’s where water treatment facilities come in, providing recycled water to spare us from the smell of evaporated urine. These facilities use membrane bioreactors, reverse osmosis, ultraviolet light, and other processes to treat water until it’s clean enough for industrial use. In some cases, this water can even be treated to the point that it’s drinkable.
“We use recycled water for cooling for all kinds of industries, and we have for decades,” Dr. Greta Zornes, practice leader for water reuse at the engineering firm CDM Smith, told TechCrunch. “So this is only one application, but definitely, there’s been a boom in recycled water for data center cooling.”
Though Zornes has worked on water reuse technology for more than two decades, her day-to-day work has shifted with the rising demand for data centers.
“Every day right now, I’m working on recycled water for data centers,” she said.
When data centers use more recycled water, they don’t pose as much of a burden to the local potable water supply. But industries can only pivot to recycled water use when there is proper infrastructure in place to treat millions of gallons of water every day.
“You have to be somewhat near a waste water treatment facility that’s sizable enough that you have enough water to use,” Zornes said. “So when data centers go out into rural areas, a lot of times the wastewater treatment plants just aren’t big enough — they’re not treating enough water for them to be able to take it and treat it and use it.”

Loudoun County, Virginia, located outside of Washington, D.C., is home to more than 250 data centers, with plans to construct at least another two dozen. As of 2025, Loudoun data centers collectively used about 200 million gallons of recycled water each day, but the water footprint of these data centers is so extreme that this only accounts for 43% of daily data center water usage in the area. The other 260 million gallons, or 57% of daily data center water usage, come from potable water supplies, according to Loudoun Water.
“There’s a lot of infrastructure that has to be built out and usually isn’t existing today, and that takes time” Zornes said. “That’s one of the problems — it’s just the time that it takes to get that done.”
Obradovitch thinks that the AI industry could even drive resources toward building out this kind of infrastructure to scale water treatment. Meta, for example, will invest at least $270 million in wastewater infrastructure projects near its data centers (the company also loses about $4 billion each quarter on its Reality Labs division).
“That’s where data centers can actually come in and be anchors of water infrastructure,” Obradovitch said. “There’s a number of cases and examples where data centers, as part of their engagement with communities, have committed funding and capital to some of these municipalities to help in addressing some of those exact challenges.”
On the policy side, Pigott is advocating for legislation that would provide a 30% tax credit to help industries scale their recycled water infrastructure.
“We think it would greatly accelerate the pace with which data centers and other industries entered into this area,” he said.
While there’s some unintentional science behind Liquid Death’s joke, the commercial and its virality serve as a reminder to the tech industry that the environmental demands of data centers have become a mainstream concern. According to a recent Gallup poll, about seven out of ten Americans oppose data centers in their communities, and AI products continue to face backlash from consumers who feel as though the technology is being forced into their lives.
“I’m glad that people are concerned about water, and anything that raises awareness of water, however crude it may be, could actually be beneficial,” Pigott said. “It gives us a chance to educate the public about what we’re doing today.”
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Tech
Someone targeted security researchers using a fake crypto conference as a lure
If you are a malicious hacker, cybersecurity professionals may very well be the worst people in the world to try to hack, as there is a very good chance they are going to catch you.
A person pretending to work for a leading crypto news site targeted several cybersecurity professionals around the time of the hacking conferences Black Hat and Def Con earlier this month. The hacker approached attendees on social media site X, both via public replies and DMs, and then leveraged Google Docs in an attempt to trick the targets into installing malware, according to researchers.
On Wednesday, security firm Huntress published a blog post detailing the hacking campaign, which targeted one of its researchers, who pretended to go along with it to learn what the hacker was trying to do.
In broken English, the hacker asked the researcher if they had plans to attend a conference next, and then mentioned a conference allegedly organized by the crypto news website, according to a screenshot of the conversation.
After that, the hacker shared a legitimate Google Doc that looked like it was a planning document for the fake conference. The document displayed a sidebar designed to make the target think it was encrypted. The goal was to first trick the target into entering a fake decryption key provided by the hacker. That was the first step in a process that would lead to the installation of malware for macOS and Windows, depending on the operating system used by the target, according to Huntress.
To make the sidebar appear real, the hacker used Google App Script, a platform that allows developers to customize the user interface of Google Docs with menus and sidebars, for example.

The hacker tried to trick Huntress’ researcher into installing an infostealer for Apple computers; a remote desktop viewing tool repurposed as malware for Windows; and a fake installer for the cryptocurrency wallet Ledger.
The person behind the account identified by Huntress researchers as the hacker did not respond when TechCrunch sent them a private message on X.
Hackers of all kinds — be them unknown government hackers using advanced spyware, or North Korean government hackers using fake Twitter profiles — have targeted cybersecurity professionals before. What made this campaign a bit more believable was the use of a legitimate Google Doc and Google feature.
Google did not immediately when TechCrunch reached out asking if the company had seen this hacking campaign, or similar ones.
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Tech
Mark buys a castle | TechCrunch
Mark Zuckerberg just bought a cozy abode close to Meta’s international headquarters in Ireland. By cozy abode, we mean a castle. Zuck bought the 19th-century Strancally Castle and its 440-acre grounds, an estate estimated to have cost him anywhere from $23 million to $35 million.
“Mark and his family are excited to continue caring for this historic home and look forward to spending time in Ireland, where Meta maintains its international headquarters,” a spokesperson told the press about the purchase.
We’ve reached out to Meta for further comment.
The home is stunning: it sits on a river, surrounded by greenery, and the Irish Times reported in 2001 that it has at least 11 bedrooms, four tower suites, a library, a dining room, and a drawing room. Zuck bought the castle from a financier who’d lived there with his family for 25 years.
Meta’s international headquarters is in Dublin, where the company opened a 31,000-square-foot data center in 2017, 20 minutes from the city. Waterford, where Zuck’s new castle is, is about a two-hour drive from Dublin.
This isn’t Zuck’s first big real estate purchase this year. He and his wife also reportedly splashed out $170 million for a home in the same exclusive Miami neighborhood as Jeff Bezos, joining a slew of tech billionaires leaving California as the state seeks to implement a form of wealth tax.
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